Cost of living pressures, in tandem with weakening consumer sentiment, are the key factors driving down world dairy markets at the present time.
This is according to Paul Vernon, the chief executive of Leprino Foods Europe.
He spoke at a seminar hosted by the Northern Ireland Institute of Agricultural Science (NIIAS) on the morning of the Royal Ulster Winter Fair yesterday (Thursday, December 11).
Consumption trends
Vernon said: “Within our business, we tend to look at consumption trends first and then factor-in production and processing-related factors thereafter.
“And the reality is that consumers are not in a good place at the present time.”
The Leprino representative went on to confirm that, year-on-year, retail visits are up slightly.
However, there has been a significant downturn in the number of opportunities taken by the public to eat out.
And this trend is reflected within all the categories represented within this sector: from fast food through to restaurant visits.
“Food service is at the heart of this,” Vernon further explained.
“If one compares the figures available for 2019, the year prior to Covid hitting, with the current 12 month period, they confirm that out-of-heating is down by 11%.”
Inflation
Inflation is another issue impacting on consumer buying trends at the present time.
Vernon said: “Where food and drink are concerned, the figure is currently running around 5%.
“Consumer buying patterns are centred almost totally on the issue of price.”
According to the Leprino CEO, consumers are cutting back on purchases.
“There is also growing concern regarding the prospects for future economic growth.
“Cost of living is the issue that is number one in driving consumer sentiment at the present time.
“And all of this uncertainty is impacting on demand across the economy.,” Vernon added.
Leprino
Leprino is the largest mozzarella cheese and lactose manufacturer in the world, exporting to over 80 countries.
Its core business interest in Northern Ireland centres on a processing facility close to the village of Magheralin in Co Down, which manufactures 50,000t of mozzarella on an annual basis.
Whey and cream are by products of that cheese-making operation.
Leprino Foods is a family-owned business with a strong commitment to the attainment of further growth and development.
A case in point is the recent completion of a new US$1 billion-worth cheese processing operation close to Lubbock in Texas.
The project was funded completely in-house without the need for any external funding support
